Growth, investment and election were the three things that Finance Minister AMA Muhith kept in mind while preparing the present government’s last budget. As he incorporated all unmet pledges since his first budget that was placed on June 13, 2009, the figure ballooned to Tk2.22tn. But driven by a craving for votes, he overlooked the means to bankroll the huge budget, and opted for a “look-good” tax structure to keep all sections of society – from a mid-income individual to the real estate businessman – happy.
Analysts see nothing wrong in the Tk2.22tn budget Muhith proposed for the next fiscal year, their concern is how to finance it, given the lacklustre performance in revenue collection in the outgoing fiscal.
Finance Minister AMA Muhith placed the budget titled “Four Years of Progress: Bangladesh Marches on,” amid opposition boycott, with a target to achieve GDP growth of 7.2%, and keep the rate of inflation at 7%.
President Abdul Hamid authenticated the proposed budget for 2013-14, and the revised budget for 2012-13 at his Jatiya Sangsad office, before it was paced in the House.
The cabinet approved the budget earlier in the day, in a meeting at Sangsad Bhaban chaired by Prime Minister Sheikh Hasina.
Prime Minister Sheikh Hasina accompanied Muhith as he entered the House with a black brief case containing the budget. He wore a cream-coloured punjabi with a black “Mujib coat.”
Offering warmest felicitations to the country’s first woman Speaker, the Finance Minister started his presentation on the supplementary budget for the outgoing fiscal year, and the proposed budget estimates for the 2013-14 fiscal year, at around 3:15pm.
The budget appears to have estimated an ambitious revenue target with 21% growth to meet heavy spending, while targeting an increased rate of domestic borrowing, which includes drawing from the banking system, which poses risks for private entrepreneurs with regard to attaining investment funds.
The budget also goes the extra mile, allowing undisclosed money, popularly known as “black money,” to be invested, in an attempt to help revive the limping real estate industry, while continuing the same measure for the capital market, which will likely benefit from additional measures that have been proposed.
Economists, business leaders and academics were skeptical about the implementation of the budget, due to “unrealistic” growth and revenue targets, as well as ongoing political unrest. It will also be a challenge to achieve the foreign aid target.
Revenue earnings will also be hit by declining international prices for imported goods, they suggested.
On the expenditure side, they expected that it would be difficult for the government to implement development projects in the election year amid heightening political tension.
However, the finance minister told the house that the implementation capacity of the government has increased significantly, and cooperation with development partners has improved as reflected by the significant reduction in the gap between budget allocation at the beginning of the fiscal year, and the revision of the estimates at the end.
He appealed to the citizens to resist all kinds of violent protests, activities leading to the damage of public property, vandalism by Jamaat-Shibir, arson and killing, and to bring an end to the current political impasse through dialogue.
Confessing the weaknesses of the government, the minister said it was unable to fulfill all the commitments they made earlier, but it has not fallen short in its sincerity.
He pointed out the country now has a strong economic footing – with poverty declining fast, declining income inequality and illiteracy, and improvements in the standard of education and public health. Remarkable progress has been made in the provision of power for the promotion of business activities, commerce, industry and in building infrastructure.
He said visible development has been made in taking forward the task of establishing “Digital Bangladesh.” “The recognition of our success has now spread far and wide.”
The minister called upon the next government, to carry forward the unfinished tasks of the Awami League-led alliance government in the “greater interest” of the nation.
He also cautioned that anti-liberation fundamentalist forces are out to “jeopardise” all the achievements made so far, and thwart the on-going trial against war criminals, which the nation has waited so long for.
He said mindless acts of violence and vandalism have put our hard-earned democracy in peril and “cast a shadow” on the economy. He added the nation was fortunate in that it was able to somehow stem the “tide of anarchy” and that the future held great potential.
The minister, who has recently become an octogenarian, said the government believes in the collective force and wisdom of the masses.
He said the government should crush the evil forces as they have done in the past, march forward to a prosperous future, realise the dream articulated in “Vision 2021,” which he claimed would leave a bright legacy. “Our united endeavours shall win the laurels, Insha Allah.”
